Question 25 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 25 Chapter 1 of +2-A

Question 25 Chapter 1 of +2-A

25. Calculate the amount that will be posted to the Income and Expenditure Account for the year ended 31st March 2019:

The stock of Stationery on 1st April 2018 30,000
Creditors for Stationery on 1st April 2018 20,000
Advance paid for Stationery carried forward from the year ended 31st March 2018 2,000
Amount paid for Stationery during the year ended 31st March 2019 1,08,000
Stock off Stationery on 31st  March 2019 5,000
Creditors for Stationery on 31st  March 2019 13,000
Advance paid for Stationery on 31st March 2018 3,000

The solution of Question 25 Chapter 1 of +2-A

: –

Statement Showing stationery used during the year
Particular Details Amount
Amount paid for stationery during the year ended 31st March 2019   1,08,000
Add: – Opening Stock of Stationery 30,000  
Closing Creditors for Medicines 13,000  
Opening Advance paid for Stationery 2,000 45,000
    1,53,000
Less: – Closing Stock of Medicines 5,000  
Opening Creditors for Stationery 20,000  
Closing Advance paid for Stationery 3,000  
    28,000
The amount for Medicine debited to the Income and Expenditure A/c   1,25,000

Note: Opening balance of advance paid for the purchase of stationery is added in the total amount paid because this amount had shown as an advance in last year balance sheet it means that the items of stationery are delivered against this amount in the current year. So we can use these items in the current year so that’s why this is the expenditure of the current year rather than the previous year. And the closing balance of advance paid is treated opposite of opening balance.

Income and Expenditure Account
Particular Amount Particular Amount
To Medicines Consumed 1,25,000    
       

 

 

Not-for-Profit Organisations – Meaning and Overview

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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2 Book 1 min - Question 25 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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